The U.S. House of Representatives has overwhelmingly approved the bipartisan Paycheck Protection Program Flexibility Act, designed to provide small businesses with more time and flexibility in applying for and using Paycheck Protection Program (PPP) loans.
Currently no more than 25% of PPP loan proceeds can be spent on nonpayroll expenses such as rent, mortgage interest, and utilities. The PPP Flexibility Act raises that figure to 40%.
The act also:
- Allows forgiveness for expenses beyond the 8-week covered period to 24 weeks and extending the rehiring deadline;
- Extends the PPP program from June 30 to Dec. 31;
- Extends loan terms from two to five years; and
- Ensures full access to payroll tax deferment for businesses that take PPP loans
The House passed the bill by a 417-1 vote, with Rep. Thomas Massie (R-Kentucky) the sole member to vote against it.
The Senate is expected to take up the bill next week.
